Dow Down 267 Points: Boeing, American Express Shares Drag Index Lower

The Dow Jones Industrial Average (DJIA) fell 267 points, or 0.9%, on Monday, as shares of Boeing (BA) and American Express (AXP) weighed on the index. The DJIA closed at 33,135, while the S&P 500 and Nasdaq Composite also finished lower, down 0.5% and 1.1%, respectively. The market was volatile throughout the day, with investors reacting to geopolitical tensions, earnings reports, and economic data.

Boeing's shares tumbled 8.7% on Monday, extending losses from last week, as concerns about the sustainability of AI spending and potential impacts of tariffs and chip export curbs mounted. The company's recent financial performance has been lackluster, with revenue decreasing by 14.5% to $66.52 billion in 2024, and losses amounting to -$11.88 billion, a 434.4% increase from the previous year. Despite these challenges, analysts maintain a positive outlook, with an average rating of "Buy" and a 12-month price forecast of $200.84, indicating a 23.53% increase from the latest price.

American Express shares also declined, falling 1.8% on Monday, as investors reacted to the company's recent earnings report and geopolitical tensions. The company's revenue increased by 9.3% to $60.76 billion in 2024, and earnings rose by 21.12% to $10.00 billion. However, the company's stock performance has been volatile, reflecting broader market sentiment and concerns about the global economy. Analysts maintain a "Hold" consensus for AXP stock, with a 12-month price forecast of $291.75, indicating a 1.76% increase from the latest price.

The market's recent slump has hit Nvidia and some other formerly high-flying areas of the market particularly hard. Nvidia shares sank 8.7%, extending losses last week as concerns intensified about the sustainability of AI spending and the possible impact of tariffs and chip export curbs. Other stocks that have been fueled by booming demand for AI, including chip designer Arm Holdings and nuclear power company Constellation Energy, also tumbled.

Stocks tied to cryptocurrencies rose sharply in early trading after Trump on Sunday announced the creation of a "Crypto Strategic Reserve." Bitcoin, which had dropped to a three-month low below $80,000 on Friday, was trading around $86,200 recently after rising to more than $93,000 earlier in the day. Shares of Strategy (MSTR), formerly known as MicroStrategy and one of the world's largest holders of bitcoin, closed nearly 2% lower amid the broader sell-off, after rising more than 10% this morning. Crypto exchange Coinbase Global (COIN) and bitcoin miner Riot Platforms (RIOT) shed more than 4% after giving up their big gains from earlier in the day.

Gold futures were up 2% at $2,905 an ounce in late trading, while West Texas Intermediate crude oil futures slid nearly 2% to $68.45 per barrel.